Currency trading as a profession – Pros and Cons

April 20, 2021

The FX market is still a place where retail CFD traders can find numerous opportunities across all currencies: majors, minors, or exotics. Embracing currency trading as a profession comes with both pros and cons, which is why all beginners need to be well aware of what they’re getting involved in.


Favorable conditions in the FX market

One of the first reasons starting is suitable now has to do with the current activity in the market. Prices are more active across the board and as new important headlines are driving order flows, plenty of short-term trading opportunities emerge. With the right techniques, tailored risk management, and a proper mindset, any individual can start trading from the comfort of their own place, without a fixed schedule or deadlines.

Why traders should start trading currencies

Financial freedom is very important, and the financial industry is a place where the potential for returns exist. Also, since advanced technologies have been developed, in the form of trading platforms or tools, convenience is acting as a tailwind. Retail trading interest has surged since the beginning of 2020 and even though recently, there is no other period in history when the world of finances was so facilitated to the wider public.

Working 9-to-5 for a wage that very likely does not meet expectations, in the long run, is pushing people to look for alternative sources of income. FX trading can be done both part-time or full-time and since this market operates 24/5, each trader can choose the right currency pairs, based on geographical location or schedule.

Downsides of trading currencies

Together with all the benefits already mentioned, currency trading carries several downsides, as well. Traders need to be aware that income is not guaranteed weekly/monthly/annually, and losses can occur. Trading is an activity involving risks and the ability to manage it professionally is one of the main differences between inexperienced and experienced traders.

At the same time, traders need to understand there is no formula to achieve consistent profitability. Losses are part of the game and even the experts are sometimes caught off-guard. There had been a broad consensus for weakness in 2021 and yet, the currency had risen during the first quarter.  Trading is a skill that takes time to master, requiring study, hard work, and a flexible mindset to adjust the strategies when needed.

Is this an avenue to go down?

Anybody can learn how to trade, yet as statistics show, not all of those joining this industry manage to succeed. Potential in the financial markets continues to exist as aggressive monetary policies and fiscal interventions continue to dominate in the mid to long-term horizon. The FX market is a place where preparation must meet opportunity. It all depends on what each trader is willing to do and whether all the negative beliefs standing in the way of financial independence are removed.